LaSalle and APG close student resi vehicle

LaSalle and APG have raised GBP 238 mln (€282 mln) for a joint venture vehicle providing whole loan finance for student housing schemes.

The fund - LaSalle Residential Finance I (LRF I) - aims to provide developers with financing for residential projects in student housing development schemes in major UK university towns as well as housing schemes in London.

The vehicle will provide funding for projects worth more than GBP 400 mln (€473 mln) at a typical loan to cost ratio of 75%. Individual loans of between GBP 15 mln (€17.7 mln) and GBP 60 mln (€71 mln) will be offered to developers.

The fund expects to announce its first deal shortly and aims to grant between five and seven loans over the next six months.

The fund’s manager Michael Zerda said: ' LRF I is the only vehicle of its size in the market today offering developers whole loan construction finance on student housing and residential development in the UK. With the traditional banking market still dealing with regulatory pressures and balance sheet pressures, this allows us to fill a clear gap in the financing market.’